Dividend or income strategies seem to be an appropriate investment strategy for long-term investors since these strategies try in general to harvest and distribute dividend yields which are above the average dividend yield of a given market. The investor can use these dividend payments either to reinvest them into their portfolio or use them as an additional stream of income. Therefore, it might be interesting to analyze how important income strategies are for European investors measured by the market share of assets under management of the respective mutual funds and ETFs compared to plain-vanilla mutual funds and ETFs investing in

News of a potential vaccine last week provided a glimpse of hope that the world can return to some level of normalcy in 2021.  The announcement from Pfizer on November 9th sent the Russell 1000 to a new all-time high of 2,000.69 on November 13th. Markets saw an aggressive rotation into value stocks.  The Russell 1000 Value index saw a 5.6% gain last week, in comparison to a -1.3% loss for the Russell 1000 Growth index.  This resulted in the value index outperforming the growth index by 6.9 percentage points for the week ending November 13th. Using Refinitiv Datastream, we

The StarMine team has published the most recent StarMine Monthly Performance Report which looks at how certain stock market factors performed in September.  We observed a sharp reversal between momentum and value, where value has significantly outperformed momentum across all regions.  This is noteworthy as momentum has been outperforming value across most regions over the last 12 months. As shown in Exhibit 1, momentum is represented by the Analyst Revision Model and Price Momentum model.  Value, which identifies both expensive and undervalued companies, is represented by the Relative Valuation and Intrinsic Valuation model.  Exhibit 2 also highlights this picture, where

In recent years, passive investment through indices has been growing significantly, and investors’ interest in index mutual funds and exchange-traded funds (ETFs) has dramatically increased. According to the Investment Company Institute, “from 2007 through 2016, index domestic equity mutual funds and ETFs received $1.4 trillion in net new cash and reinvested dividends, while actively managed domestic equity mutual funds experienced a net outflow of $1.1 trillion.” 1 With the explosive growth in passive ETFs, constructing appropriate investing strategies using these ETFs is more important now than ever. StarMine has created a number of unique and highly effective quantitative equity alpha